Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:
Gaining ratio is calculated at the time of :
Options:
Admission of a partner
At the time of dissolution of firm
At the time change in capital contribution by partners.
At the time of death or retirement of a partner
Correct Answer:
At the time of death or retirement of a partner
Explanation:
The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining ratio.